In today’s world, there are many technologies that ease our daily life — genetic engineering, nanorobots, neurobiology, etc. However, complete understanding of their working principle is not that easy to understand for a regular individuals.
Smart contracts are accessible for everyone: a bookmaker, a trader, a private entrepreneur — everyone can “look under the hood” of any of the thousands of contracts to ensure that the code is correct and use it for their own purposes or create a personal one.
Smart contracts gradually implement into all spheres of our world — with their help you can easily pay for insurance, process transactions or even conduct large projects. Technology simplifies everything it touches.
Noticeably it touched traders, many of which are involved in activity on centralized cryptoexchanges. In fact, they play some kind of russian roulette — they have no guarantee that exchange will not freeze all assets, sending millions of traders to write angry tweets “How I bankrupted on the exchange X”.
Smart contracts can save traders from their blogger career.
Everyone has heard about the disadvantages of centralized exchanges, but what about decentralized ones? The introduction of smart-contracts in the trading process solves main problems of the centralized analogues — the risk of loss and theft of funds, opacity and the need for trust. Users will be able to control their funds and reach the most important functions through the blockchain: exchanges use the technology of the crypto-currencies themselves, thereby ensuring the security and transparency of trade. DEX solves many issues appearing on cryptocurrency markets, as they do not have a single point of failure.
This is due to the power of technology. But the main difference between the decentralized exchange — the global trading, which is achieved with help of the oracles. No, those are not prophets with a hipster beard in a cassock, it’s a little bit more complicated and much more interesting.
Oracles translate information from external sources into a form accessible to the blockchain and connect smart contracts with the real world. Combining the data of several blockchains and crypto-exchanges, oracles help to create a single decentralized space in which trading can reach a new level — a level where you do not need to trust anyone but yourself.
Oracles expand the scope of smart contracts dozens of times — where there is a place for the precise information, there is a place for a contract.
Want to buy the currency when its price won’t try to bite you, like a hungry shepherd? Write it in the smart contract and back it up with an Oracle that will monitor the price of the cryptocurrency on the exchange.
But the technology of smart contracts is created not only for the lone wolves, it can be used in cooperative transactions.
Suppose a new project reports the launch of an ICO. A contract appears in the blockchain, which redirects all investors funds to the dedicated address. After the end of the ICO, the same contract, taking into account the individual contribution of each, rewards everyone who participated in the ICO with tokens. What’s unusual about that? — it’s about the community. The author of this smart contract receives a part of the project’s profit as a reward. Remember how much money the average ICO attracts, and your hands will be drawn to drive the phrase “how to write a smart contract” into the search engine.
Blockchain is constantly evolving: healthy competition, development and encouragement of community activity — that’s what distinguishes excellent projects from good ones.
But what about newcomers to the blockchain? Don’t worry, the road to the future is open to everyone. This technology can be useful both for experienced trading sharks and for those, who have just plunged into the blockchain ocean.
The main obstacle between the trader and his Benjamin Franklins — the lack of a third eye, allowing you to look into the future and predict the exchange rate. Oracle will not open the third eye, they work a bit in a different way. Blockchain creates a single genuine database of quotations, with which the user can independently identify patterns in the dynamics of prices before the ups or downs of currencies — everything depends on you.
Exchanges and trading appeared a few centuries ago, and time does not stand still — brokers with shares were replaced by a blockchain with cryptocurrencies.
